Criminals across the UK have hacked the new keycard system used to top up pre-payment energy meters and are going door-to-door, dressed as power company workers, selling illegal credit at knock-down prices.

The pre-paid power meters use a key system. Normally people visit a shop to put credit on their key, which they then take home and slot into their meter.

The conmen have cracked the system and can go into people’s houses and put credit on their machine using a hacked key. If they use this, it can be detected the next time they top up their key legitimately.

The system detects the fraud, in that it shows up on audit at a later time. But by then, the criminals are long gone. Clever.

It gets worse:

Conmen sell people the energy credit and then warn them that if they go back to official shops they will end up being charged for the energy they used illegally.

They then trap people and ratchet up the sales price to customers terrified they will have to pay twice ­ something Scottish Power confirmed is starting to happen here in Scotland.

The Wright State Research Institute is developing a ground-breaking system that would scan the skeletal structures of people at airports, sports stadiums, theme parks and other public places that could be vulnerable to terrorist attacks, child abductions or other crimes. The images would then quickly be matched with potential suspects using a database of previously scanned skeletons.

Because every country has a database of terrorist skeletons just waiting to be used.

To determine how similar a person’s fingertip bacteria are to bacteria left on computer keys, the team took swabs from three computer keyboards and compared bacterial gene sequences with those from the fingertips of the keyboard owners.

Today in the Proceedings of the National Academy of Sciences, they conclude that enough bacteria can be collected from even small surfaces such as computer keys to link them with the hand that laid them down.

The researchers then tested how well such a technique could distinguish the person who left the bacteria from the general population. They sampled bacteria from nine computer mice and from the nine mouse owners. They also collected information on bacterial communities from 270 hands that had never touched any of the mice. In all nine cases, the bacteria on the mice were far more similar to the mouse-owners’ hands than to any of the 270 strange hands. The researchers also found that bacteria will persist on a computer key or mouse for up to 2 weeks after it has been handled.

Online transactions with credit cards or debit cards are increasingly verified using the 3D Secure system, which is branded as “Verified by VISA” and “MasterCard SecureCode”. This is now the most widely-used single sign-on scheme ever, with over 200 million cardholders registered. It’s getting hard to shop online without being forced to use it.In a paper I’m presenting today at Financial Cryptography, Steven Murdoch and I analyse 3D Secure. From the engineering point of view, it does just about everything wrong, and it’s becoming a fat target for phishing. So why did it succeed in the marketplace?

Quite simply, it has strong incentives for adoption. Merchants who use it push liability for fraud back to banks, who in turn push it on to cardholders. Properly designed single sign-on systems, like OpenID and InfoCard, can’t offer anything like this. So this is yet another case where security economics trumps security engineering, but in a predatory way that leaves cardholders less secure. We conclude with a suggestion on what bank regulators might do to fix the problem.

I don’t know if this is real, but it seems perfectly reasonable that all of Facebook is stored in a huge database that someone with the proper permissions can access and modify. And it also makes sense that developers and others would need the ability to assume anyone’s identity.

Rumpus: You’ve previously mentioned a master password, which you no longer use.Employee: I’m not sure when exactly it was deprecated, but we did have a master password at one point where you could type in any user’s user ID, and then the password. I’m not going to give you the exact password, but with upper and lower case, symbols, numbers, all of the above, it spelled out ‘Chuck Norris,’ more or less. It was pretty fantastic.

Rumpus: This was accessible by any Facebook employee?

Employee: Technically, yes. But it was pretty much limited to the original engineers, who were basically the only people who knew about it. It wasn’t as if random people in Human Resources were using this password to log into profiles. It was made and designed for engineering reasons. But it was there, and any employee could find it if they knew where to look.

I should also say that it was only available internally. If I were to log in from a high school or library, I couldn’t use it. You had to be in the Facebook office, using the Facebook ISP.

Rumpus: Do you think Facebook employees ever abused the privilege of having universal access?

Employee: I know it has happened in the past, because at least two people have been fired for it that I know of.

[...]

Employee: See, the thing is — and I don’t know how much you know about it — it’s all stored in a database on the backend. Literally everything. Your messages are stored in a database, whether deleted or not. So we can just query the database, and easily look at it without every logging into your account. That’s what most people don’t understand.

Rumpus: So the master password is basically irrelevant.

Employee: Yeah.

Rumpus: It’s just for style.

Employee: Right. But it’s no longer in use. Like I alluded to, we’ve cracked down on this lately, but it has been replaced by a pretty cool tool. If I visited your profile, for example, on our closed network, there’s a ‘switch login’ button. I literally just click it, explain why I’m logging in as you, click ‘OK,’ and I’m you. You can do it as long as you have an explanation, because you’d better be able to back it up. For example, if you’re investigating a compromised account, you have to actually be able to log into that account.

Rumpus: Are your managers really on your ass about it every time you log in as someone else?

Employee: No, but if it comes up, you’d better be able to justify it. Or you will be fired.

Rumpus: What did they do?

Employee: I know one of them went in and manipulated some other person’s data, changed their religious views or something like that. I don’t remember exactly what it was, but he got reported, got found out, got fired.

The video is worth watching, even if you don’t speak German. The scanner caught a subject’s cell phone and Swiss Army knife — and the microphone he was wearing — but missed all the components to make a bomb that he hid on his body. Admittedly, he only faced the scanner from the front and not from the side. But he also didn’t hide anything in a body cavity other than his mouth — I didn’t think about that one — he didn’t use low density or thinly sliced PETN, and he didn’t hide anything in his carry-on luggage.

Full-body scanners: they’re not just a dumb idea, they don’t actually work.

Abstract:
The access control provided by a physical lock is based on the assumption that the information content of the corresponding key is private — that duplication should require either possession of the key or a priori knowledge of how it was cut. However, the ever-increasing capabilities and prevalence of digital imaging technologies present a fundamental challenge to this privacy assumption. Using modest imaging equipment and standard computer vision algorithms, we demonstrate the effectiveness of physical key teleduplication — extracting a key’s complete and precise bitting code at a distance via optical decoding and then cutting precise duplicates. We describe our prototype system, Sneakey, and evaluate its effectiveness, in both laboratory and real-world settings, using the most popular residential key types in the U.S.

Those of you who carry your keys on a ring dangling from a belt loop, take note.

Back in 2005, I wrote about the failure of two-factor authentication to mitigate banking fraud:

Here are two new active attacks we’re starting to see:

Man-in-the-Middle attack. An attacker puts up a fake bank website and entices user to that website. User types in his password, and the attacker in turn uses it to access the bank’s real website. Done right, the user will never realize that he isn’t at the bank’s website. Then the attacker either disconnects the user and makes any fraudulent transactions he wants, or passes along the user’s banking transactions while making his own transactions at the same time.

Trojan attack. Attacker gets Trojan installed on user’s computer. When user logs into his bank’s website, the attacker piggybacks on that session via the Trojan to make any fraudulent transaction he wants.

See how two-factor authentication doesn’t solve anything? In the first case, the attacker can pass the ever-changing part of the password to the bank along with the never-changing part. And in the second case, the attacker is relying on the user to log in.

The theft happened despite Ferma’s use of a one-time password, a six-digit code issued by a small electronic device every 30 or 60 seconds. Online thieves have adapted to this additional security by creating special programs–real-time Trojan horses–that can issue transactions to a bank while the account holder is online, turning the one-time password into a weak link in the financial security chain. “I think it’s a broken model,” Ferrari says.

One way to think about this is that two-factor authentication solves security problems involving authentication. The current wave of attacks against financial systems are not exploiting vulnerabilities in the authentication system, so two-factor authentication doesn’t help.Security is always an arms race, and you could argue that this situation is simply the cost of treading water. The problem with this reasoning is it ignores countermeasures that permanently reduce fraud. By concentrating on authenticating the individual rather than authenticating the transaction, banks are forced to defend against criminal tactics rather than the crime itself.

Credit cards are a perfect example. Notice how little attention is paid to cardholder authentication. Clerks barely check signatures. People use their cards over the phone and on the Internet, where the card’s existence isn’t even verified. The credit card companies spend their security dollar authenticating the transaction, not the cardholder.

File deletion is all about control. This used to not be an issue. Your data was on your computer, and you decided when and how to delete a file. You could use the delete function if you didn’t care about whether the file could be recovered or not, and a file erase program — I use BCWipe for Windows — if you wanted to ensure no one could ever recover the file.

You have to trust that these companies will delete your data when you ask them to, but they’re generally not interested in doing so. Sites like these are more likely to make your data inaccessible than they are to physically delete it. Facebook is a known culprit: actually deleting your data from its servers requires a complicated procedure that may or may not work. And even if you do manage to delete your data, copies are certain to remain in the companies’ backup systems. Gmail explicitly says this in its privacy notice.

Online backups, SMS messages, photos on photo sharing sites, smartphone applications that store your data in the network: you have no idea what really happens when you delete pieces of data or your entire account, because you’re not in control of the computers that are storing the data.

This notion of control also explains how Amazon was able to delete a book that people had previously purchased on their Kindle e-book readers. The legalities are debatable, but Amazon had the technical ability to delete the file because it controls all Kindles. It has designed the Kindle so that it determines when to update the software, whether people are allowed to buy Kindle books, and when to turn off people’s Kindles entirely.

Vanish is a research project by Roxana Geambasu and colleagues at the University of Washington. They designed a prototype system that automatically deletes data after a set time interval. So you can send an email, create a Google Doc, post an update to Facebook, or upload a photo to Flickr, all designed to disappear after a set period of time. And after it disappears, no one — not anyone who downloaded the data, not the site that hosted the data, not anyone who intercepted the data in transit, not even you — will be able to read it. If the police arrive at Facebook or Google or Flickr with a warrant, they won’t be able to read it.

The details are complicated, but Vanish breaks the data’s decryption key into a bunch of pieces and scatters them around the web using a peer-to-peer network. Then it uses the natural turnover in these networks — machines constantly join and leave — to make the data disappear. Unlike previous programs that supported file deletion, this one doesn’t require you to trust any company, organisation, or website. It just happens.

Of course, Vanish doesn’t prevent the recipient of an email or the reader of a Facebook page from copying the data and pasting it into another file, just as Kindle’s deletion feature doesn’t prevent people from copying a book’s files and saving them on their computers. Vanish is just a prototype at this point, and it only works if all the people who read your Facebook entries or view your Flickr pictures have it installed on their computers as well; but it’s a good demonstration of how control affects file deletion. And while it’s a step in the right direction, it’s also new and therefore deserves further security analysis before being adopted on a wide scale.

We’ve lost the control of data on some of the computers we own, and we’ve lost control of our data in the cloud. We’re not going to stop using Facebook and Twitter just because they’re not going to delete our data when we ask them to, and we’re not going to stop using Kindles and iPhones because they may delete our data when we don’t want them to. But we need to take back control of data in the cloud, and projects like Vanish show us how we can.

Now we need something that will protect our data when a large corporation decides to delete it.

Unlike traditional browser cookies, Flash cookies are relatively unknown to web users, and they are not controlled through the cookie privacy controls in a browser. That means even if a user thinks they have cleared their computer of tracking objects, they most likely have not.What’s even sneakier?

Several services even use the surreptitious data storage to reinstate traditional cookies that a user deleted, which is called ‘re-spawning’ in homage to video games where zombies come back to life even after being “killed,” the report found. So even if a user gets rid of a website’s tracking cookie, that cookie’s unique ID will be assigned back to a new cookie again using the Flash data as the “backup.”